With the Government’s R&D Tax Credit scheme, UK businesses have been given the opportunity to explore innovative methods into how they can become more efficient while influencing the wider community with their developmental strategy. This includes claiming back the costs involved in researching this approach.
These R&D Tax Credits have made a huge difference to UK businesses, with thousands of these organisations being granted up to £600,000 (by 2017/2018 financial year).
Whilst some business owners relish the idea of (essentially) being given free money (which they weren’t aware of getting in the first place). Others are cautious at the thought of a tedious claiming process and hence reject the proposal of a claim, as it may seem like it is not worth the time and effort involved.
Fortunately, there are various companies set up to help businesses process their R&D claims, much like us at Green Jellyfish. These businesses act as the ‘middle man’ between the claimants and HMRC.
The R&D Tax Credit claims process is complicated and can be time-consuming, so, working with your existing accountant seems to be the easier choice. Although they know the details of your firm’s finances, they are not as close to the details of your projects, which is a crucial component in a successful claim.
It is easy to jump at the first business that approaches you to claim for R&D Tax Credit, but it is even more important to investigate specific factors to ensure that your claim’s chance of success is the highest it could be.
The following are 4 factors you should consider before choosing a business to process your claim.
- HMRC Compliance Checks
HMRC usually undergo compliance checks on claims which could be randomised or because of potential mistakes found in the reports. Regardless of either, this is where claims can become unsuccessful and it’s generally drawn to the specific technical details within a claimant’s report. It’s imperative to look for expert report writers who specialise within R&D to avoid these mistakes and compliance checks.
- Level of Experience
When looking at options for who you want to claim R&D Tax Credit on your behalf, it’s always handy to note what their breadth of experience is like. For example, this could be how many claims they have helped the process in the different industries they’ve operated in. The reason being is that different regulations apply for different industries when claiming R&D Tax Credits. Therefore, having experienced R&D Tax Credit specialists who have worked in a wide range of claimant projects will give you a better chance of having a successful claim. After all, you could be doing certain things which you don’t think would even qualify, but do! There are even some companies with experienced specialists who have built up enough resilience and knowledge to ensure that your claim cannot be rejected.
- The Entire Process
Although the process is usually similar across the board with R&D Tax Credit companies, each firm has its own step-by-step process of dealing with the claim. It is certainly not as simple as having one meeting and then commencing with the project. It should be a transparent and thorough process from start to finish and if not, it could become a concern. Companies who are making a claim have a legal obligation to provide the correct information while the R&D Tax Credit specialists must have a full understanding of the business they are working with. At Green Jellyfish, we ensure that we are transparent with our clients about each stage of the claim process. On our website, we have listed the process claim and what each stage is included within it, to give us as much information to our clients and potential customers as possible. This is to ensure that everyone has (as a minimum) equal amounts of knowledge prior to making any commitments.
- Level of Support and Communication
The final factor you should consider is the level of support and communication that your R&D Tax Credit specialist will provide. If the specialists do not spend any time with their clients and exclude them from the whole process, this would be something to be concerned about. At a company like Green Jellyfish, we ensure that after each stage of the process, a meeting with our clients will be held to explain the current situation and where we will go from there.
Although various industries are eligible for R&D Tax Credits, not all claims are accepted. If you decide to choose an R&D Tax Credit company to help you process the claim, think carefully about all the factors (mentioned above) before committing to one. Qualifying for R&D Tax Credits is a great opportunity especially during Post-Covid-19 pandemic times, so find a firm that is resilient enough to put you in the best position for a successful claim.
You will not be disappointed with how a successful claim can positively affect your business in the future. To learn more click here.